Important Terms in the Blockchain World

There are so many technical terms flying around in the blockchain space and there’s no definitive guide for people to understand what these things are. The following is a quick and easy definition guide for terms used in the blockchain space.

We may add to this guide as new key terms surface so keep it bookmarked.

1. Blockchain
   Blockchain is a decentralized database in its core. It works by having duplicates of this database on many computers at the same time. It updates itself automatically every ten minutes to look for changes in all the computers and attempts to verify the changes. The benefits being that there is no one point of failure unlike a singular database stored on one computer.
2. Bitcoin
   Bitcoin is a type of digital currency that utilizes blockchain technology. It allows users to send payment directly to other users within the blockchain without needing a bank or a payment gateway. The concept was proposed by a pseudonymous developer named Satoshi Nakamoto, the idea was to create a payment method without needing any centralized body like banks.
3. Ethereum
   Ethereum is an open source software platform that utilize blockchain technology and lets developers or anyone with the knowledge to build and deploy applications. Ethereum and Bitcoin are both cryptocurrencies but they differ in the aspect of allowing the building of applications. Bitcoin was built solely for the purpose of peer to peer transfer of currency where as Ethereum was built for allowing any developer to utilize blockchain technology to build any applications they want
4. DApp
   DApp is the abbreviated words decentralized application. Majority of application has a user interface and a database, in the case of a DApp the database code is stored on the decentralized network. The user interface for the application can be written in any language or hosted anywhere, it will then call the code on the decentralized network for information.
5. Cryptocurrency
   Bitcoin and Ethereum are both cryptocurrency. In essence it is a currency that uses the blockchain technology. In blockchain technology a lot of cryptography is used and therefore the name cryptocurrency.
6. Fork
   A fork is when the developers of certain cryptocurrencies want to make a change on the code of the blockchain and this creates two version of the cryptocurrency. Since the two blockchain has different codes there will be incompatibility in the coins, and ending with two different currencies in the end.
7. ICO
   ICO is the abbreviated version of Initial Coin Offering. ICO is a way for companies to raise money without regulations. The company offers up part of the company or a cryptocurrency that reflects the value of the company in exchange for other currencies, usually Bitcoins.

If you are located in Hong Kong and would like to learn more about Blockchain, check out our Blockchain: Avenue to the Future course.